The US Federal Reserve's FOMC has decided to keep its benchmark interest rate unchanged at 4.25%-4.5% for a fourth consecutive time. The decision was unanimous.
The central bank has lowered the 2025 GDP estimate to 1.4% from 1.7%.
On the other hand, it has lifted inflation forecast from 2.7% to 3%, way above the 2% target.
"Although swings in net exports have affected the data, recent indicators suggest that economic activity has continued to expand at a solid pace. The unemployment rate remains low, and labor market conditions remain solid. Inflation remains somewhat elevated," the Fed said.
Besides, the FOMC projections show a half percentage point cut in 2025, the same as in March. That means the Fed may deliver two quarter-point cuts this year.
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